Consumer finance firm F88, Kasikornbank HCMC launch strategic partnership

The Ho Chi Minh City Branch of Thailand’s Kasikornbank has embarked on a strategic cooperation partnership with Vietnamese financial services company F88 to tap unbanked and underserved people in the Vietnamese market.

“Our partnership with F88, the leading micro-finance player in the market, is a significant step for Kasikornbank to enhance additional capabilities in fulfilling our mission to broaden access to financial services to the underserved population in Vietnam,” said Chatuporn Boozaya-Angool, director of the Thai bank’s HCMC Branch.

Phung Anh Tuan, chairman and CEO of F88, said: “By utilizing Kasikornbank’s expertise in deploying comprehensive financial products in Thailand, we believe F88 will make breakthroughs in Vietnam’s financial market.”

Vietnam’s consumer finance market is still in its infancy but is expected to mature in the next few years, he added.

The strategic partnership will target financial inclusion of still unbanked and underserved residents via both online and offline channels, F88 said.

The consumer finance firm currently operates some 830 service points and offices across Vietnam, and plans to expand to at least 1,000 this year, according to Tuan. In terms of performance, F88 has achieved an average annual growth rate of loan balance and total revenue of more than 200%, it said. The firm expects to make an initial public offering in 2024 if its market capitalization can reach $1 billion.

F88 in November 2022 secured a $60 million loan from Lending Ark Asia Secured Private Debt Funds and London-based Lendable to further expand its loan book. Lending Ark Asia, part of Hong Kong-based investment firm CLSA Capital Partners, contributed $50 million, while the other $10 million was provided by British startup Lendable.

Thailand’s Kasikornbank opened its HCMC Branch last August, saying it expected to have 1.2 million clients and disburse over $500 million in Vietnam.